EFFICIENT UNIT LOADS - ECR Community

More documents

Recommendations

Info

On a day-to-day basis, a large Dutch retailer handles some 50 different, mostly incompatible, secondary RTI. These are managed by a variety of different systems and therefore, harmonisation would simplify operations. The management control system should focus on improving the turn rate first rather than on controlling current losses. Used in conjunction with accurate forecasting, this will ensure that RTI are in the right place at the right time. Other aspects of an effective control system are: • Choice of system supplier, so that competitive pressure leads to high standards and low prices • Some obligatory rules, but maximum flexibility within these rules, so that systems can be tailored to particular applications • Defined construction standards – some of these will also pertain to legislation, e.g. for RTI in contact with primary food products. All RTI joining a pool should meet these standards. • Effective procedures for ensuring that items are undamaged and meet set hygiene standards • Simple, low cost, inter-pool compatible administrative procedures • RTI logistics service providers with an obligation to collect and sort items from all pool operators • Security arrangements to avoid the development of “grey markets” in RTI or misuse. The Efficient Unit Loads team recommends establishing a RTI council under the umbrella of EAN International, supported by the CCG and other national initiatives dealing with RTI. Its purpose is to establish standards and promote best practice in developing and managing RTI. 6.7. Choosing the Right Secondary RTI Solution In deciding whether or not RTI is suitable for a particular application, many factors should be considered. To facilitate such a decision a number of useful criteria are depicted in Appendix 10.4. Based on a model provided by Konferenz Industrie-Handel, these criteria, for example, include seasonality, product, protection and supply chain structure. Additional criteria can be incorporated to reflect particular business needs. Fruit, vegetables and fresh meat, often shipped in RTI, are examples of products which meet such criteria, however, other products may also be suitable. If RTI appears to offer potential advantages, the next steps should comprise the following five points: “.. SET UP AN APPROPRIATE TEAM” Within most organisations, RTI impact many functions: product development, packaging design, marketing, production planning, production, sales, buying, transport, warehousing, and retail operations. If RTI is only perceived, e.g. as a packaging issue, it is unlikely that a whole supply chain view can be taken, and thus, decisions to adopt, reject or vary RTI systems will be based on incomplete data. Intelligent use of RTI is a multi-functional issue. “...GO FOR THE EASY WINNERS FIRST” It is beneficial to introduce RTI systems from the start but to avoid some of the problems inherent in a mix of RTI and non-RTI systems an overall introduction for a complete category is recommended. A good approach is to introduce RTI systems initially for those applications that are likely to produce immediate, obvious benefits across the whole supply chain, obtain these benefits quickly, and use that initial experience as an incentive to adapt more categories progressively to RTI. “...CHOOSE YOUR PARTNER” Supply chain partners need to form partnerships to obtain a whole supply chain view. While one or the other partner may be the initiator or be dominant initially, the best result will be obtained from willing, co-operative organisations able to take balanced views, and with salesman/buyer or other functional relationships that take account of more than just item unit price. The Efficient Unit Loads Report 41
42 “...DIFFERENT BUT COMPATIBLE” There is always a temptation for partners to regard each supply chain as unique, requiring a unique RTI solution. This may be the case, but wherever possible, operating and design principles should ensure that the preferred system is compatible with other systems. “...TWO PLUS TWO MAKES FIVE” Traditionally, supply chain costs have been commercially sensitive. Can partners trust each other enough to believe each set of figures? The financial and the soft benefits and costs must be calculated. If a competitor adopts RTI there could be a penalty. If the net benefit is sufficient to justify change, then: • Negotiate sharing of benefits and costs between the partners • Adapt the organisation, methods and systems to reflect use of RTI and to optimise benefits (if there was a net benefit using RTI with the existing organisation, methods and system, there will be a greater benefit after adoption) • On-going, find ways to improve the number of turns achieved per year. Poor RTI utilisation costs money. Organisations that can provide assistance include: • Associations such as EuroCommerce or AIM, who are aware of RTI progress in their sectors, and can recommend European and national associations • <strong>ECR</strong> national boards, now operating in most Western European countries • CCG – especially on rules for ensuring compatibility of RTI designs, and on operating systems for pools of RTI • Management Consultants – who can bring previous experience, objectivity and partner identification to an RTI project • Standardisation bodies – such as EAN, CEN or its national standards institutes, who develop the standards • Manufacturers of RTI – generally plastics manufacturers, who often have a useful overview, and will be up-to-date on the latest design techniques • Commercial Partners – such as manufacturers or retailers, who may already be using RTI with other partners; or RTI pool operators and service providers expanding their businesses. The Efficient Unit Loads Report
Page 1 and 2: An EDS Company THE EFFICIENT UNIT L
Page 3 and 4: 2 The Efficient Unit Loads Report
Page 5 and 6: EXECUTIVE SUMMARY Efficient Unit Lo
Page 7 and 8: 6 Strictly modular dimensions 1200
Page 9 and 10: 1INTRODUCTION 8 The harmonisation o
Page 11 and 12: Efficient Unit Loads This Report su
Page 13 and 14: 2 BACKGROUND Unit loads impact almo
Page 15 and 16: 14 Efficient Unit Loads generate tr
Page 17 and 18: 3 THE CURRENT SITUATION Today’s u
Page 19 and 20: Figure 6: Pallet and roll cage Ther
Page 21 and 22: Today’s unit loads perform poorly
Page 23 and 24: Figure 11: Agreements on secondary
Page 25 and 26: 4DRIVING PRINCIPLES Manufacturers a
Page 27 and 28: Figure 14: Typical total supply cha
Page 29 and 30: Fixed constraints include: • Tran
Page 31 and 32: This chain is highly efficient from
Page 33 and 34: 5SECONDARY UNIT LOADS Secondary dim
Page 35 and 36: Figure 20: Cumulative module usage
Page 37 and 38: 6REUSABLE TRANSPORT ITEMS (RTI) Sec
Page 39 and 40: Non-quantifiable potential benefits
Page 41: Figure 22: Some RTI design alternat
Page 45 and 46: 7TERTIARY UNIT LOADS Tertiary Unit
Page 47 and 48: In their various roles, tertiary it
Page 49 and 50: Pallet Overhang Pallet overhang is
Page 51 and 52: Figure 25: Example of a roll cage S
Page 53 and 54: In the short-term, tertiary unit lo
Page 55 and 56: 8BENEFITS Efficient Unit Loads can
Page 57 and 58: percent of retail sales price - can
Page 59 and 60: 8.4. EUL Design and Supply Chain De
Page 61 and 62: 9ACHIEVING TANGIBLE BENEFITS Future
Page 63 and 64: • Improving space utilisation, pa
Page 65 and 66: • Reducing current dimensional pr
Page 67 and 68: 0APPENDIX 66 The Efficient Unit Loa
Page 69 and 70: Efficient Promotion (EP) Suppliers
Page 71 and 72: 10.2. Additional Data and Figures D
Page 73 and 74: 10.3. Modular Space Utilisation Ana
Page 75 and 76: Results Figure 46 and Figure 47 cle
Page 77 and 78: 10.4. RTI Product Suitability Figur
Page 79 and 80: Final Thanks The European ECR Execu

EFFICIENT UNIT LOADS - ECR Community

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?